dawsongroup plc annual report & accounts 2016 · trucks and trailers market sectors revenue...

Dawsongroup plc Annual Report & Accounts 2016

1 Corporate Statement 2 Chairman’s Statement and Financial Highlights 4 Strategic Report 12 Directors and Advisers 13 Statutory Directors’ Report 15 Independent Auditor’s Report 16 Consolidated Statement of Comprehensive Income 17 Consolidated Statement of Financial Position 18 Consolidated Statement of Changes in Equity 19 Consolidated Statement of Cash Flows 20 Company Statement of Financial Position 21 Company Statement of Changes in Equity 22 Accounting Policies 27 Notes to the Financial Statements 40 Five Year Record Business Directory

Annual Report & Accounts 2016 1

Dawsongroup is one of Europe’s leading asset rental businesses and the UK’s largest independent company in the sector, specialising in a

wide range of commercial vehicles, buses, coaches, materials handling equipment, sweepers, temperature controlled products and portable kitchen units. The group also owns a dedicated finance company, supporting all group sales activities, as well as providing direct broker services.

Celebrating over 80 years in business, Dawsongroup now owns over 21,750 high quality premium assets, rented to a broad customer base of large reputable companies.

Operational areas

Dawsongroup plc

Operational areas

Dawsongroup2

Peter M Dawson

Dawsongroup has continued to deliver a strong and consistent result despite 2016 presenting challenging market conditions. The majority of divisions have successfully maintained growth in revenue and profit – however the weakness of the used market for vans and tractor units had an effect on the group’s overall result.

Chairman’s Statement

Underlying performance remains strong and our strategy of maintaining investment in new premium quality equipment has supported this success, driving our goal of a young fleet with high reliability and low running costs – placing Dawsongroup at the forefront of up to date technologies.

During 2016 Dawsongroup terminated seven of its bank interest rate swap obligations, which will have a positive impact on future trading results.

We have also continued our investment in people, facilities and infrastructure, as well as a range of IT initiatives that will maintain Dawsongroup as an industry leader in customer service.

Results and dividendOn turnover of £206.0m (2015: £197.4m), profit before tax, fair value adjustments and the termination of seven interest rate swaps, which accounted for a net credit of £20m, decreased by £1.7m to £29.2m (2015: £30.9m).

The dividends for the year amounted to £10.0m (2015: £3.0m).

Balance sheetCapital expenditure for the year amounted to £143.2m compared with £183.0m in the previous year. Asset disposal profits of £5.3m (2015: £6.2m) were achieved from proceeds of £49.3m (2015: £44.9m). These, together with operational cash flows of £118.8m (2015: £122.3m), meant that net debt increased by £3.0m to £215.1m.

Despite this, gearing reduced to 101% which is exceptionally low for an asset rental business supported by a strong contractual base. Unexpired contract revenue stood at £154.6m compared with £145.1m last year. Interest was covered 2.7 times by operating profit (2015: 2.7 times).

People2016 saw the retirement of Mike Williams as Dawsongroup CEO after 40 years of loyal service, for which the group expresses its sincere thanks.


He is succeeded by Steve Miller, previously group MD, thereby providing a seamless succession to the group’s leadership.

Freya and Charles Dawson continue to develop within the business as the next generation of the Dawson family, ensuring that Dawsongroup remains a family business in the future.

There were no other board or divisional MD changes – indeed the consistency of staff commitment to the company’s success is demonstrated by the average length of service of the group’s 750 plus staff at over ten years.

Management talent is being developed through a business mastery programme as well as an ongoing and successful graduate recruitment scheme.

OutlookOur focus on renting premium equipment with outstanding customer service will continue – and it is very encouraging to see more

customers making long term commitments.

Our focus for 2017 will be to continue to develop our market advantage in truck and trailer rental, further consolidate our TCS businesses in Europe and continue the expansion of Dawsonrentals Vans and Dawsongroup Finance.

Recent investments in customer focused IT and new product offerings show promise, continuing the development of Dawsongroup from an asset rental provider to a full business solutions partner.

The board remains confident for the future of the group, despite the uncertainties that exist around the UK withdrawal from the EU. In particular the extent to which Sterling weakness will place inflationary pressures on future asset purchases and any arising market confidence issues will require close management.

Peter M Dawson B Eng, FIMI

Chairman

22 March 2017

Profit before tax £m and fair value adjustments

Turnover £m

Temperature- controlled products

Materials handling equipment and sweepers

Finance brokerage

Trucks and trailers

Market sectors revenue

Buses and coaches

Vans

27.3

30.929.2

18.815.6

2014 2015 201620132012

181.3197.4

206.0

159.9148.6

2014 2015 201620132012

Dawsongroup4

Strategic Report

Strategic Report

Dawsongroup’s strong financial and operating performance is achieved through close management of its diverse portfolio of asset rental products with common engineering or customer profiles. Tight cost control, rigid risk management, professional purchasing and asset disposal are all significant contributors to the company’s success.

Strategic Review

Record levels of investment undertaken in recent years ensured a strong ongoing customer commitment to our truck, trailer, van and bus businesses throughout 2016.

The low age and high reliability of our rental asset fleet, together with a high level of customer service, has maintained and grown our long term contractual base. Key investment in certain product sectors will further enhance this position.

Revenue growth has generally been maintained, however asset disposal channels have been constrained by political and economic issues in established export markets. This, together with the UK market having been negatively affected by vehicle manufacturers chasing volume in an over-supplied market, depressed

used disposal values and sector profitability.

Temperature Controlled Solutions delivered another strong result, and our European businesses performed well despite significant economic disruption, providing a platform for further growth as the Euro economies recover supported by the investment in a new purpose built site in Dusseldorf. Exchange rate movement had some positive impact on profitability and Europe will remain a key expansion opportunity for the group long term.

Dawsongroup’s decision to expand into new specialist product sectors, that utilise established expertise and existing customer relationships – notably in portable auto centres, waste handling vehicles, mobility vans and minibuses, camper vans

Stephen J Miller

Anthony Coleman

2016

£m %2015

£m %

Trucks and trailers 96.3 46.8 94.3 47.8

Vans 25.9 12.6 21.7 11.0

Materials handling equipment and sweepers

18.8 9.1 17.5 8.9

Temperature-controlled products 39.2 19.0 36.3 18.3

Buses and coaches 24.8 12.0 27.1 13.7

Finance brokerage 1.0 0.5 0.5 0.3

Group revenue 206.0 100.0 197.4 100.0

Annual Report & Accounts 2016 5Annual Report & Accounts 2016 5

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Strategic Report continued

Buses

and specialist temperature controlled buildings – have all delivered encouraging results. These developments are supported by a series of strategic partnerships with specialist manufacturers with whom Dawsongroup have exclusive rights to hire their products. Furthermore, a number of innovative products utilising in-vehicle telematics will strengthen customer service and compliance data provision.

Trucks and trailersBusiness dynamics were broadly neutral, showing slight growth in revenues but with profitability constrained by used vehicle disposal values. Encouragingly, long term contract growth was significant.

The company’s decision to lead the market in investing in new trailers and Euro 6 Trucks, together with a high profile marketing campaign, enabled demand for our well defined flexible contract hire and rental product to be maintained.

Changes to the fleet mix will, over time, reduce the division’s exposure to short term variations in used vehicle values – as will Dawsongroup’s focus on new technologies and safety that will differentiate its downstream product offering. Recent purchases have included significant safety enhancements. We are proud to be the first UK rental fleet to specify autonomous full emergency braking, exceeding any current or proposed legislation. This pioneering first for Dawsonrentals has been well received by operators who recognise the value and peace of mind offered.

Significant investments are being made to assist customers in meeting regulatory and compliance requirements in both truck and trailer operation, as well as systems to

provide real time operating data. In particular, provision of customer on-line access to maintenance and compliance data and our iPhone check in/check out App have been well received by customers and continues to position Dawsongroup as market leader in customer care and innovation.

VansThe van rental business has continued its strong trading performance with double digit growth in fleet size and revenue and a significant rise in Dawsonrentals Vans customer base.

While profitability was held back by a decline in used vehicle values, a dedicated van asset disposal programme, under the unique brand of Van Ninja, has been established to optimise disposal revenues, with promising early results.

Importantly, under the established management team, the business processes and procedures have been overhauled to ensure that profitable growth continues against a background of strong customer satisfaction, with a sound platform for onward development and expansion. This is further assisted by having consolidated all business functions into one dedicated location at Dawson Road, Milton Keynes.

With continued investment in new equipment and infrastructure, a fleet age profile of 14 months and a highly flexible rental offering, the Dawsonrentals Vans package is proving highly attractive to established van operators. Combined with the group’s customer service ethic and effective support systems, continued strong growth is expected.

Materials handling equipmentThe material handling market remains challenging, however Dawsonrentals’

Sweepers

Strategic Reportcontinued


ability to offer customers a flexible range of products with predictable costs has enabled the MHE division to achieve both revenue and profit growth in 2016.

Significant strengthening of the sales and support teams, combined with a strong focus on cost control, should ensure that profitable growth can be sustained.

Recent investment in the divisions’ headquarters at Garforth has enhanced the staff working environment and internal communication, which in turn has brought higher efficiencies and customer satisfaction. Furthermore, equipment investment has remained high to take advantage of new fuel-efficient technologies and a growing confidence in this sector, which in turn has supported our partnership relationship with a number of leading equipment manufacturers.

SweepersDawsonrentals Sweepers strengthened its position as a market leader in the UK self drive sweeper sector with a strong double digit growth performance in 2016. Ongoing investment in new Euro 6 equipment continued to reduce the fleet age profile, ensuring higher levels of reliability and performance for customers.

A strong focus on customer service has increased the customer base and secured new long term contracts, justifying the decision to expand into the gully tanker and refuse collection sectors, with continuing encouraging results. The establishment of a fully operational sub depot at Pucklechurch will further support the business development in the South of England.

Temperature-controlled productsDawsonrentals Temperature Control Solutions has evolved in recent years from an equipment rental provider to become a consultative business partner, offering innovative solutions and assisting process change to bring best results for customers. The company ethos that “it’s not just about the box, it’s how you use it” sums up the approach that has been so successful.

This consultative approach is clearly demonstrated in the pharmaceutical sector, where Dawsonrentals Temperature Control Solutions is now identified as the industry preferred supplier.

Investment is concentrated on safety and energy management, which when combined with the long product life cycle in this sector, will provide significant competitor advantage over time. With revenue growth of nearly 6% in 2016, over 60% of units delivered were brand new or new generation, energy efficient equipment. Future prospects remain strong, aided by new products under development.

The temperature controlled solutions businesses in Europe also performed well, considering market conditions; growing group revenue and profit contributions, in addition to positive exchange rate movements.

Buses and coachesA relatively static public transport sector has not prevented Dawsonrentals Bus and Coach from improving its core performance, diversifying from the traditional bus and coach sectors by expanding in smaller vehicles, targeting staff transportation and patient transfer.

Utilising in house finance facilities, Dawsonrentals Bus and Coach’s ability to offer fully supported contract

Temperature Control Solutions

Materials Handling Equipment

Dawsongroup8


hire packages for passenger carrying vehicles, including mini-buses, maintains the company’s position as a leader in this sector.

The company maintains strong industry links and recognises that while recent Government funding has been constrained in this sector, there is pressure on local authorities to favour public transport as part of an obligation to improving city air quality, and the business is well placed to capitalise on any opportunities.

Portable cold rooms and temporary kitchensThis division is now making a positive contribution to group results.

Having largely withdrawn from the chilled display cabinet sector, as returns have been historically weak, new modular cold room products and services are being developed, which are now performing well.

The new high capacity inflatable fridge/freezer is opening up new market opportunities – which combined with modular cold rooms and towable fridge units, provide a full range of refrigerated products on offer.

This complements the temporary kitchen business, which is experiencing significant growth, alongside the development of a similar temporary laundry unit.

The division also incorporates a camper van rental business, utilising and converting nearly new vans sourced from Dawsonrentals Vans.

Finance BrokerageFollowing a rebuilding year in 2015, 2016 has brought fresh energy and direction to this business, which the board has every confidence can regain its role as a key profit contributor to the group, as well as facilitating other group sales activities.

The development of Dawsongroup Finance, which started trading in January 2016, seeks to service internal financing opportunities, by expanding away from being largely a finance broker, to provide a spectrum of finance products to support group businesses using capital market funds, backed up by the strength of Dawsongroup’s balance sheet and ability to manage assets throughout life – from acquisition to disposal.

First year results are very encouraging, with nearly £80m of funding transacted, and a strengthening inter-company relationship developing between the finance company and the operational divisions.

OtherThe group has three dedicated asset disposal arms which operate on a national basis, Dawsondirect (previously National Truck and Trailer Sales), Ventura – the bus and coach specialist and Dawsonrentals Van Sales. All have built enviable reputations for the quality and condition of the products they sell and the customer service that they provide. The other divisions dispose of their ex-hire fleet assets through their own resources.

These sales and marketing efforts, together with the group’s prudent depreciation policies, provided disposal profits of £5.3m (2015: £6.2m) from proceeds of £49.3m (2015: £44.9m).

EmployeesWe would like to express our gratitude to our workforce, now numbering over 750, for their continued dedication and hard work which will ensure the continued success and growth of Dawsongroup.

Temporary kitchens

Portable cold rooms

Annual Report & Accounts 2016 9Annual Report & Accounts 2016 9

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Financial reviewThe group’s trading performance is explained in the strategic review. This review provides further information on other significant financial issues.

InterestOn average net borrowings during the year of £213.6m (2015: £197.8m), net interest payable decreased by £1.22m to £17.34m (2015: £18.56m). This excludes a net £20m credit arising on the settling of £138.5m of interest rate swaps during the year.

Interest cover is the same as last year at 2.7 times (2015: 2.7 times).

TaxThe 2016 tax charge is £7.0m which is comprised of corporation tax payable of £4.8m and deferred tax of £2.2m. Corporation tax actually payable in respect of 2016 profits was £7.39m (2015: £7.57m).

Cash flowThe group cash inflow from operating activities, essentially profit plus depreciation and changes in working capital, totalled £118.8m (2015: £122.3m). A further £49.3m (2015: £44.9m) was generated from the disposal of fixed assets. Cash outflow for interest paid, tax and dividends, together amounted to £35.4m (2015: £29.6m).

Capital expenditureCapital expenditure, almost entirely relating to investment for hire fleet growth and replacement programmes, amounted to £143.2m (2015: £183.0m).

BorrowingsNet debt increased to £215.1m (2015: £212.1m), comprising hire fleet asset finance of £246.3m (2015: £246.4m) less net cash of £31.2m (2015: £34.3m). Year-end gearing was 101% (2015: 114%).

Risks and uncertaintiesFinance and treasuryThe group operates a central finance and treasury function which is responsible for arranging and managing all of the group’s financial instruments, comprising borrowings, cash and liquid resources and interest rate swaps, in the most appropriate manner, at the lowest cost.

These policies remained unchanged throughout the year and are summarised as follows:

FinancingThe group’s principal borrowings are in respect of hire fleet investments which are funded, net of suitable deposits, by way of asset finance. The preference for variable rate hire purchase debt continues because it is administratively simple, avoids the issues of fees and covenants which typically arise with bank lending, provides for total flexibility without penalties on early termination and enables capital allowances to be claimed on the assets. Where circumstances so permit in terms of the group’s tax position, the group will also consider fixed or variable rate finance leases. All other assets are purchased for cash and are unencumbered.

Asset finance repayments are matched, conservatively, against the revenue stream from the related assets over their income-generating lives. In the case of trucks this policy has been set at 3 years, vans at 2 years and, for all other assets, at 5 years. As a result, 40% of such borrowings at the year-end were due to mature in more than 2 but less than 5 years.

Asset finance facilities are established with a wide range of lenders primarily on a revolving basis and each subject

to different annual review dates. The board considers that there are sufficient credit facilities available to meet all projected requirements. Short-term flexibility for working capital purposes is achieved through overdraft facilities.

Interest ratesThe exposure to variable rate debt is hedged through interest rate swaps. At the year-end these totalled £160.0m (2015: £298.5m), effectively fixing the relevant variable rate asset finance debt at an average base rate of 4.6%.

Foreign currenciesThe group has subsidiaries in the Euro currency zone and finances all hire fleet additions and most working capital requirements for these businesses in local currencies in order to partially protect the group’s Sterling statement of financial position from exchange rate movements. The group also purchases certain hire fleet assets in the UK from overseas suppliers which are denominated in foreign currencies. This exchange rate exposure is limited through forward currency purchases.


Overview

In 2016 Dawsongroup once again demonstrated its reputation as a successful asset rental company in its markets in the UK and Europe.

The excellent financial performance continues to be built on a platform of:-

• a wide asset portfolio – over 21,750 hire fleet assets at the year-end;

• a high contractual base;

• a broad customer base – the largest customer in 2016 represented just 5.4% of group revenue;

• first-rate supplier relationships – without a dependency on any single supplier of product or finance;

• a committed and motivated management team supported by hard-working and enthusiastic employees – numbering over 750 across 7 countries; and

• a proven track record in the asset rental and contract hire industry spanning over 40 years.

This report was approved by the board on 22 March 2017 and signed on its behalf by:

Stephen J MillerGroup Chief Executive

22 March 2017

Anthony ColemanGroup Finance Director


Dawsongroup12

Directors and Advisers

Group headquarters and registered office Dawsongroup plc Delaware Drive Tongwell Milton Keynes MK15 8JH Tel: 01908 218111 Fax: 01908 218444

Registered number 1902154

Website www.dawsongroup.co.uk

Secretary Lucinda A Kent FCA

Auditor Mazars LLP The Pinnacle 160 Midsummer Boulevard Milton Keynes MK9 1FF

Principal bankers Barclays Bank Barclays Client Services Luton Regional Service Centre PO Box No. 729 Luton LU1 2LJ

The Royal Bank of Scotland Corporate and Institutional Banking 2nd Floor 152 Silbury Boulevard Milton Keynes MK9 1LT

Peter M DawsonB Eng, FIMIExecutive ChairmanPeter joined the family haulage business in 1956 and spearheaded the early growth and development of the group. AGED 78

Stephen J MillerGroup Chief ExecutiveStephen joined the group in 1986 and was appointed managing director of Dawsonrentals Truck and Trailer in 2002. In October 2009 he was appointed group managing director. In September 2016 he was appointed group chief executive. AGED 51

Anthony ColemanFCAGroup Finance DirectorAppointed group finance director in January 2006, Anthony is now in his 17th year with the group having joined as group financial controller and company secretary. AGED 43

Ian JonesNon-Executive DirectorIan was appointed a non-executive director of Dawsongroup plc on 1 August 2012, having spent the previous ten years as managing director of Commercial Vehicles and vans at Mercedes-Benz UK. AGED 63

Directors and Advisers


Statutory Directors' Report

The directors present their report and the audited financial statements of the group for the year ended 31 December 2016.

Activities and business reviewThe principal activity of the group is the rental of commercial vehicles, buses, coaches, materials handling equipment, sweepers, temperature-controlled products and portable kitchen units. It also provides finance broker services. Dawsongroup plc is the holding company.

A detailed review of the group’s trading during the year and of its business outlook is contained within the chairman’s statement on pages 2 and 3 and the strategic report on pages 4 to 11.

Results and dividendsThe consolidated trading results and year-end financial position are shown in the financial statements on pages 16 to 39.

The profit after tax for the financial year was £32,784,000 (2015: £34,246,000). Ordinary dividends of £9,991,000 were paid (2015: £3,030,000). The retained profit of £22,793,000 has been transferred to reserves.

DirectorsThe current directors of Dawsongroup plc are set out on page 12. Mr Michael Williams retired as a director on 15 September 2016.

Directors’ indemnityThe company’s Articles of Association provide, subject to the provisions of UK legislation, an indemnity for directors and officers of the company in respect of liabilities they incur in the discharge of their duties or in the exercise of their powers, including any liabilities relating to the defence of any proceedings brought against them which relate to anything done or omitted, or alleged to have been done or omitted, by them as officers or employees of the company.

Appropriate directors ̓and officers’ indemnity insurance cover is in place in respect of all the company’s directors.

DonationsThe group made charitable donations during the year amounting to £9,721 (2015: £7,823). No political donations were made in either year.

Employment policiesThe group continues to encourage the participation of its employees in the business in which they work. Established communication and consultation procedures exist which aim to ensure that employees are informed about, and involved in, matters which are of interest and concern to them.

The group is an equal opportunities employer and its policies for the recruitment, training, career

development and promotion of employees are based on the relevant merits and abilities of the individuals concerned. The policies also allow disabled persons to compete on an equal basis. Any existing employee who becomes disabled is given the training required to ensure that, wherever possible, continuity of employment can be maintained.

The group promotes all aspects of health and safety throughout the group in the interest of its employees.

Creditor payment policyOperating businesses are responsible for agreeing the terms and conditions under which business transactions with their suppliers are conducted. It is group policy that payments to suppliers are made in accordance with these terms, provided that the supplier complies with all relevant terms and conditions.

At 31 December 2016 the amount for trade creditors in the balance sheet represented 24 days (2015: 23) of average daily purchases for the company and 31 days (2015: 14) in respect of the group’s main UK operating subsidiaries.

Disclosure in the strategic reportAs permitted by Paragraph 1A of Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and reports) Regulations 2008 certain matters which are required to be disclosed in the directors’ report have been omitted as they are included in the strategic report on pages 4 to 11. These matters relate to activities and business review and risks and uncertainties.

Lucinda A Kent

Dawsongroup14

Statutory Directors' Report continued

Directors’ responsibilities statementThe directors are responsible for preparing the corporate statement and financial highlights, the chairman’s statement, strategic report, the directors’ report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and of the profit or loss of the group for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s transactions and disclose with reasonable accuracy at any time the financial position of the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the Annual Review and Summary Financial Statements and Annual Report and Financial Statements published on the group’s corporate website. Legislation in the UK concerning the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to disclosure of information to auditorSo far as each person who is a director is aware, there is no relevant audit information of which the group’s auditor is unaware. Each director has taken all steps that he ought to have taken in his duty as a director in order to make himself aware of any relevant audit information and to establish that the group’s auditor is aware of that information.

AuditorMazars LLP has expressed its willingness to continue in office and a resolution concerning reappointment will be put to the directors at the board meeting approving these financial statements.

Approved on behalf of the board and signed on its behalf by

Lucinda A Kent FCA

Secretary22 March 2017

Statutory Directors' Reportcontinued


Independent auditor’s report to the members of Dawsongroup plcWe have audited the financial statements of Dawsongroup plc for the year ended 31 December 2016 which comprise the consolidated statement of comprehensive income, the consolidated and company statement of financial position, the consolidated and company statement of changes in equity, the consolidated statement of cash flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

Respective responsibilities of directors and auditor:As explained more fully in the directors’ responsibilities statement set out on page 14, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. This report is made solely to the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility

to anyone other than the company and the company’s members as a body for our audit work, for this report, or for the opinions we have formed.

Scope of the audit of the financial statements:A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s web-site at www.frc.org.uk/auditscopeukprivate.

Opinion on the financial statements:In our opinion the financial statements:

• give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 December 2016 and of the group’s profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on the other matter prescribed by the Companies Act 2006:In our opinion, based on the work undertaken in the course of the audit:

• the information given in the corporate statement and financial highlights, chairman’s statement, strategic report and statutory directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the corporate statement and financial highlights, chairman’s statement, strategic report and statutory directors’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exceptionIn light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the corporate statement and financial highlights, chairman’s statement, strategic report or statutory directors’ report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns;

• certain disclosures of directors’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Stephen Brown (Senior Statutory Auditor)

For and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor

The Pinnacle 160 Midsummer Boulevard Milton Keynes MK9 1FF

Date: 22 March 2017

Report of the Auditors

Dawsongroup16

Consolidated Statement of Comprehensive Incomefor the year ended 31 December 2016

2016 2015Continuing operations Notes £’000 £’000

Turnover 1 206,027 197,445Cost of sales 125,583 116,429 Gross profit 80,444 81,016Other operating income 1 836 740Administrative expenses 34,758 32,266 Operating profit 2 46,522 49,490Gains arising on fair value of investment property 10 2,603 10 Profit on ordinary activities before interest, fair value of derivative instruments and taxation 49,125 49,500Interest receivable and similar income 5 20,697 455Interest payable and similar charges 6 18,038 19,010 Profit on ordinary activities before fair value of derivative instruments and taxation 51,784 30,945(Losses)/gains arising on fair value of derivative instruments 16 (12,047) 11,488 Profit on ordinary activities before tax 39,737 42,433Taxation 7 6,953 8,187 Profit for the year attributable to owners 32,784 34,246

Other comprehensive income:Exchange differences arising on translation of foreign operations 3,986 (1,055) Loss on revaluation of freehold property – (128) Deferred tax on revaluation of freehold property 7 – (6) Total comprehensive income attributable to owners 36,770 33,057

The notes on pages 22 to 39 are an integral part of these financial statements.


Consolidated Statement of Financial Position as at 31 December 2016

2016 2015Notes £’000 £’000 £’000 £’000

Fixed assetsIntangible assets 8 – –Tangible assets 9 514,895 506,202Investment property 10 21,169 16,752

536,064 522,954Current assetsInventory 1,035 854Trade and other debtors 12 33,242 24,231Investments – short-term deposits 13 42,161 36,360Cash at bank and in hand 13 2,950 1,850

79,388 63,295

Creditors due within one yearBorrowings 14 129,335 108,243Trade and other creditors 15 114,250 127,910

243,585 236,153

Net current liabilities 164,197 172,858

Total assets less current liabilities 371,867 350,096

Creditors due after one yearBorrowings 14 130,873 142,027Trade and other creditors 15 13,157 9,503

144,030 151,530

Provisions for liabilities and charges 227,837 198,566Employee benefits 17 3,393 3,507Deferred tax 17 11,820 9,541Other provisions 17 444 117

15,657 13,165

Net assets 212,180 185,401

Capital and reservesCalled up share capital 18 8,057 8,057Share premium account 1,285 1,285Capital reserve 9,980 9,980Revaluation reserve 3,766 3,766Profit and loss account 189,092 162,313

Equity shareholders’ funds 212,180 185,401

The financial statements on pages 16 to 39 were approved and authorised for issue by the board of directors on 22 March 2017.Directors: S J Miller A Coleman


Dawsongroup18

Consolidated Statement of Changes in Equityfor the year ended 31 December 2016

Called up share

capital

Share premium account

Capital reserve

Revaluation reserve

Profit and loss account

Equity shareholders’

funds£’000 £’000 £’000 £’000 £’000 £’000

At 1 January 2015 8,057 1,285 9,980 3,900 132,152 155,374

Profit for the financial year – – – – 34,246 34,246Other comprehensive income:– Loss on fair value of freehold

property– – – (134) – (134)

– Exchange differences arising on translation of foreign operations

– – – – (1,055) (1,055)

Total comprehensive income – – – (134) 33,191 33,057

Dividends paid (note 19) – – – – (3,030) (3,030)

At 31 December 2015 8,057 1,285 9,980 3,766 162,313 185,401

Profit for the financial year – – – – 32,784 32,784Other comprehensive income:– Profit on fair value of freehold

property– – – – – –

– Exchange differences arising on translation of foreign operations

– – – – 3,986 3,986

Total comprehensive income – – – – 36,770 36,770

Dividends paid (note 19) – – – – (9,991) (9,991)

At 31 December 2016 8,057 1,285 9,980 3,766 189,092 212,180

ReservesShare premium accountThe share premium account represents the difference between the proceeds and the nominal value of each share issued.

Capital reserveThe capital reserve represents the nominal value of share capital that has been redeemed and cancelled.

Revaluation reserveThis reserve represents the cumulative revaluation gains and losses on revaluation of land and buildings held as tangible fixed assets.

Profit and loss accountThe profit and loss account reserve represents cumulative profits and losses of the group.



Consolidated Statement of Cash Flows for the year ended 31 December 2016

2016 2015Notes £’000 £’000

Operating activitiesProfit on ordinary activities before tax 39,737 42,433Adjusted for:Gains arising on fair value of investment property 10 (2,603) (10)Losses/(gains) arising on fair value of derivative instruments 16 12,047 (11,488)Depreciation of tangible assets 9 93,521 86,906Profit on disposal of tangible assets 2 (5,318) (6,167)Interest receivable 5 (20,697) (455)Interest payable 6 18,038 19,010

Operating cash flows before movement in working capital 134,725 130,229

(Increase)/decrease in stock (139) 60(Increase)/decrease in trade and other debtors (5,470) 4,695Increase/(decrease) in trade and other creditors 13,262 (4,567)Increase/(decrease) in provisions 168 (670)Termination fee on cancellation of swap 5 (16,506) –Interest received 5 162 135Income tax paid (7,388) (7,573)

Net cash flows from operating activities 118,814 122,309

Investing activitiesProceeds from disposal of tangible assets 49,251 44,948Purchase of tangible assets 9 (143,171) (182,991)

Net cash flows used in investing activities (93,920) (138,043)

Financing activities(Decrease)/increase in obligations under finance lease 14 (253) 51,371Dividends paid 19 (9,991) (3,030)Interest paid 6 (18,038) (19,010)Collateral deposit (5,950) (26,690)

Net cash flows (used in)/from financing activities (34,232) 2,641

Net decrease in cash and cash equivalents (9,338) (13,093)

Cash and cash equivalents at the beginning of the year (1,631) 11,570Effect of exchange rates on cash and cash equivalents 326 (108)

Cash and cash equivalents at the end of the year (10,643) (1,631)

Unrestricted cash and cash equivalents 13 3,251 2,300Overdraft 14 (13,894) (3,931)

Total cash and cash equivalents at the end of the year (10,643) (1,631)


Dawsongroup20

Company Statement of Financial Positionas at 31 December 2016

2016 2015Notes £’000 £’000 £’000 £’000

Fixed assetsTangible assets 9 489 390Investment in subsidiary undertakings 11 49,111 49,111

49,600 49,501Current assetsInventory 1 1

Trade and other debtors 12 68,466 55,554

Investments - short-term deposits 13 41,869 35,919

Cash at bank and in hand 13 7 264 110,343 91,738

Creditors due within one yearBorrowings 14 14,722 5,122

Trade and other creditors 15 44,854 39,116

59,576 44,238 Net current assets 50,767 47,500

Total assets less current liabilities 100,367 97,001Creditors due after one yearTrade and other creditors 15 12,902 9,365

12,902 9,365

87,465 87,636

Provisions for liabilities and charges 17 1,243 1,945

Net assets 86,222 85,691

Capital and reservesCalled up share capital 18 8,057 8,057Share premium account 1,285 1,285Capital reserve 6,658 6,658Profit and loss account 70,222 69,691

Equity shareholders’ funds 86,222 85,691

The company has elected to take the exemption permitted under Section 408 of the Companies Act 2006 not to present the company’s profit and loss account. The company’s profit for the year was £10,522,000 (2015: £18,441,000).

The financial statements on pages 16 to 39 were approved and authorised for issue by the board of directors on 22 March 2017.

Directors: S J Miller A Coleman



Company Statement of Changes in Equityfor the year ended 31 December 2016

Called up share

capital

Share premium account

Capital reserve

Profit and loss account

Equity shareholders’

funds£’000 £’000 £’000 £’000 £’000

At 1 January 2015 8,057 1,285 6,658 54,280 70,280

Profit for the financial year – – – 18,441 18,441Other comprehensive income – – – – –

Total comprehensive income – – – 18,441 18,441Dividends paid (note 19) – – – (3,030) (3,030)

At 31 December 2015 8,057 1,285 6,658 69,691 85,691

Profit for the financial year – – – 10,522 10,522Other comprehensive income – – – – –

Total comprehensive income – – – 10,522 10,522Dividends paid (note 19) – – – (9,991) (9,991)

At 31 December 2016 8,057 1,285 6,658 70,222 86,222

ReservesShare premium accountThe share premium account represents the difference between the proceeds and the nominal value of each share issued.

Capital reserveThe capital reserve represents the nominal value of share capital that has been redeemed and cancelled.

Profit and loss accountThe profit and loss account reserve represents cumulative profits and losses of the company.


Dawsongroup22

Accounting Policies

Accounting Policies

General informationDawsongroup plc (“the company”) is a public limited company incorporated in the United Kingdom. The address of its registered office and principal place of business is Delaware Drive, Tongwell, Milton Keynes, MK15 8JH. The principal activity of the group is the rental of commercial vehicles, buses, coaches, materials handling equipment, sweepers, temperature controlled products and portable kitchen units. It also provides finance broker services. Dawsongroup plc is the holding company.The company is a parent undertaking and therefore these consolidated financial statements present the financial information of the company and its subsidiary undertakings (together “the group”), as well as the company’s individual financial statements. These consolidated and company financial statements have been presented in Pounds Sterling as this is the company’s functional currency, being the primary economic environment in which the company operates. The level of rounding used throughout the financial statements is to the nearest thousand.Basis of preparationThese financial statements have been prepared in accordance with FRS 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (“FRS 102”) and applicable legislation, as set out in the Companies Act 2006 and The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. These financial statements have been prepared under the historical cost convention, as modified for the fair value of investment properties and derivative financial instruments.FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions, which have been complied with, including the notification of and no objection to, the use of exemptions by the company’s shareholders. In preparing the company individual financial statements, the company has taken advantage of the following exemptions: • from disclosing key management personnel compensation, as required by paragraph 7 of Section 33 Related Party

Disclosures; • from presenting a reconciliation of the number of shares outstanding at the beginning and end of the year, as required by

paragraph 12 of Section 4 Statement of Financial Position; and• from presenting a statement of cash flows, as required by Section 7 Statement of Cash Flows.On the basis that equivalent disclosures are given in the consolidated financial statements the company has also taken advantage of the exemption not to provide: • certain disclosure requirements of Section 11 Basic Financial Instruments and Section 12 Other Financial Instrument Issues.Basis of consolidationThe group financial statements consolidate the financial statements of Dawsongroup plc and all its subsidiary undertakings for the year ended 31 December 2016.Subsidiary undertakings acquired during the year are accounted for under the acquisition method of accounting, and are consolidated from the date the company achieves control over such entities, thereby having the power to govern the financial and operating policies of the entity of acquisition. The financial statements of subsidiary undertakings that are acquired or disposed of within the financial year are included within, or excluded from, the consolidation from the date that the company obtains or loses control.Transactions and balances between subsidiary undertakings have been eliminated; no profit is taken on sales between subsidiary undertakings until the products are sold to customers outside the group. Where necessary, adjustments are made to the financial statements of group entities to bring the accounting policies used in line with those used by the group.Going concern The financial statements have been prepared on the going concern basis which assumes that the group will continue in operational existence for the foreseeable future.The directors have reviewed cash flow forecasts for a period of not less than 12 months from the date of the audit opinion and are confident that the group will be able to pay its liabilities as they fall due. On this basis, the directors consider it appropriate to prepare the financial statements on the going concern basis. TurnoverTurnover is measured at the fair value of the consideration received or receivable and represents amounts for the provision of services and the sale of goods in the normal course of business, net of discounts and other sales-related taxes.Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the group’s net investment outstanding in respect of the leases.Income from the sale of vehicles and equipment is recognised when the group has transferred the significant risks and rewards of ownership to the buyer, which is usually the date that delivery of the vehicles and equipment is taken.Rental income from investment property is recognised on a straight-line basis over the term of the lease.Interest income is recognised as interest accrues using the effective interest rate method.


TaxationThe tax expense for the year comprises current and deferred tax. Tax currently payable, relating to UK corporation tax, is calculated on the basis of the tax rates and laws that have been enacted or substantively enacted as at the reporting date. Deferred tax is recognised on all timing differences that have originated but not reversed at the reporting date. Transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future give rise to a deferred tax liability or asset. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in years different from those in which they are recognised in the financial statements.Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted as at the reporting date, that are expected to apply to the reversal of the timing difference. The tax expense is recognised in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense.Deferred income tax assets are recognised only to the extent that, on the basis of all available evidence, it is deemed probable that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Current and deferred tax assets and liabilities are offset only when there is a legally enforceable right to set off the amounts and there is the intention either to settle on a net basis or to realise the asset and settle the liability simultaneously.Foreign currenciesForeign currency transactions are translated into the functional currency of the reporting entity using the exchange rate prevailing at the date the transactions took place. Income and expense items are translated using an average exchange rate for the year where there are limited fluctuations in foreign exchange rates. Monetary assets and liabilities denominated in foreign currencies at the reporting date are reported at the rates of exchange prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at the reporting date of monetary assets and liabilities are reported in profit or loss.For the purpose of presenting consolidated financial statements, the assets and liabilities of the group are translated at the exchange rates prevailing at the reporting date. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the date of transactions are used. Exchange differences arising are recognised through other comprehensive income.Intangible assets Intangible assets are initially recognised at cost, being the purchase price plus any directly attributable costs, and are subsequently measured at cost less any accumulated amortisation and impairment losses.Goodwill relates to acquisitions that took place before 1 January 2014 and represents the excess of the consideration payable over the fair value of the separable net assets acquired. Goodwill has been fully amortised.Intangible assets, including goodwill, are tested for impairment where an indication of impairment exists at the reporting date.Tangible assetsTangible assets are measured at cost less accumulated depreciation and impairment losses, with the exception of freehold property which is at valuation.Depreciation is provided to write down the cost of fixed assets by equal instalments to their estimated residual values over the period of their estimated useful lives with the group in accordance with the table below:

Useful life with the group Residual value

Hire fleetCommercial vehicles 5 years 20% – 25%Trailers 10-12.5 years 2.5% – 15%Car transporters and drawbar trailers 9 years 10%Vans 3-4 years 25% – 30%Cars 2-3 years 25% – 50%Purpose built portable cold stores 15 years 25%Buses and coaches 9-15 years 10% – 15%Materials handling equipment 7-9 years 5% – 15%Sweepers 5-8 years 5% – 30%Scissor lifts 10 years 15%Kitchen units 15 years 10%Display refrigeration and kitchen equipment 8 years NilOther 4-12.5 years Nil – 15%

Accounting Policiescontinued

Dawsongroup24

Accounting Policies continued Accounting Policies continued

Useful life with the group Residual value

Non hire fleetFreehold buildings 20-50 years NilPlant and equipment 5-10 years NilPortable office buildings 7-12.5 years 15%Computer hardware 4 years NilCars 4 years 25% – 40%

Tangible assets are tested for impairment where an indication of impairment exists at the reporting date.Investment propertyThe group classifies land and buildings, whether in whole or part, as investment property when it is held to earn rentals or for capital appreciation or both. Investment properties are initially measured at cost, which comprises the purchase price and any directly attributable expenditure, and are subsequently remeasured to fair value at each reporting date with changes in fair value recognised in profit or loss. Investments in subsidiary undertakingsInvestments in subsidiary undertakings are recognised at cost less accumulated impairment losses in the company financial statements. Investments are tested for impairment where an indication of impairment exists at the reporting date.Impairment of assetsAt each reporting date, the group reviews the carrying value of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. The recoverable amount of an asset is the higher of fair value less costs to sell and value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. The present value calculation involves estimating the future cash inflows and outflows to be derived from continuing use of the asset, and from its ultimate disposal, applying an appropriate discount rate to those future cash flows.Where the recoverable amount of an asset is less than the carrying amount an impairment loss is recognised immediately in profit or loss. An impairment loss recognised for all assets is reversed in a subsequent year if, and only if, the reasons for the impairment loss have ceased to apply.InventoryInventory is stated at the lower of cost, using the first in first out method, and selling price less costs to complete and sell.Financial instrumentsFinancial assets and liabilities are recognised when the group becomes party to the contractual provisions of the financial instrument. The group holds basic and non-basic financial instruments, which comprise cash at bank and in hand, short-term deposit investments, trade and other debtors, loans and borrowings, trade and other creditors, and derivative financial instruments. The group has chosen to apply the measurement and recognition provisions of Section 11 Basic Financial Instruments and Section 12 Other Financial Instrument Issues in full.Financial assets – classified as basic financial instrumentsCash and cash equivalentsCash and cash equivalents include cash at bank and in hand and other short-term highly liquid investments with original maturities of three months or less which are classified as current asset investments. Trade and other debtorsTrade and other debtors are initially recognised at the transaction price, including any transaction costs, and are subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Amounts that are receivable within one year are measured at the undiscounted amount of the amount expected to be receivable, net of any impairment. At the end of each reporting year, the group assesses whether there is objective evidence that any financial asset amount may be impaired. A provision for impairment is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the financial assets. The amount of the provision is the difference between the asset’s carrying amount and the present value of the estimated future cash flows. The amount of the provision is recognised immediately in profit or loss.Financial liabilities – classified as basic financial instrumentsTrade and other creditors and loans and borrowingsShort term trade and other creditors and loans and borrowings are initially measured at the transaction price. Other financial liabilities which constitute financing transactions are initially and subsequently measured at the present value of the future payments, discounted at a market rate of interest.Derivative financial instruments – classified as other financial instrumentsDerivative financial instruments comprise interest rate swaps and are initially recognised at fair value at the date the derivative contract is entered into, and are subsequently measured at fair value at each reporting date. The resulting gain or loss is recognised in profit or loss.


LeasesLeases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.Finance leasesThe group as a lesseeFixed assets obtained under finance leases are treated in the same way as hire purchase contracts, that is as though they were purchased outright and depreciated accordingly. The outstanding capital element of such leases is included within borrowings in the statement of financial position. The interest element of leasing payments is charged to profit and loss over the period of the finance lease in accordance with the “sum of digits” method. Interest costs on fixed rate hire purchase contracts are also accounted for by this method.The group as a lessorAmounts due from lessees under finance leases are recognised as receivables at the amount of the group’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the group’s net investment outstanding in respect of the leases.Operating leasesThe group as a lesseeRentals payable under operating leases are charged to profit and loss on a straight-line basis over the term of the relevant lease. Any benefits receivable as an incentive to enter into an operating lease are spread on a straight-line basis over the lease term.The group as a lessorRental income from operating leases are credited to income on a straight-line basis over the terms of the lease. Asset purchase rebatesRebates and bonuses from manufacturers and distributors are credited to profit or loss over a three to five year period from the date of installation of the relevant assets to coincide with their expected life within the group.Future purchase undertakingsAs part of its trade the group has undertaken to purchase commercial vehicles and trailers from certain lessors and manufacturers upon the future termination of operating lease agreements or other arrangements with third parties at prices estimated to be not less than realisable value at the time of purchase. Where necessary a provision is made to the extent that such commitments are now estimated to exceed realisable value.Where the commitment has been notified, the commercial vehicles and trailers are included within fixed assets at the expected cost of repurchase and the related liabilities are recognised in the statement of financial position. Fee income for future purchase undertakings is credited to profit or loss over the respective lives of such leases having regard to future assessment, inspection and other related costs.Employee benefitsRetirement benefitsThe group operates a defined contribution pension scheme, the assets of which are held separately from those of the group in funds administered by insurance companies. Contributions to the defined contribution pension scheme are charged to the profit or loss in the year to which the contributions relate.Long-term incentive schemesThe group operates a long-term incentive scheme for certain employees. Liabilities for the scheme are recognised when the group has an obligation to make payments as a result of a past event, and are measured at the present value of the obligation at the end of each reporting date. The scheme is an unfunded scheme.Short-term benefitsShort-term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.Critical accounting judgements and key sources of estimation uncertaintyIn applying the group’s accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors’ judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised, if the revision affects only that year, or in the year of the revision and future years, if the revision affects both current and future years.Critical judgements in applying the group’s accounting policiesThe critical judgements that the directors have made in the process of applying the group’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements are discussed below.(i) Assessing indicators of impairment In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability.

Dawsongroup26

Accounting Policies continued Accounting Policies continued (ii) Classifying lease arrangementsThe directors classify lease arrangements as finance leases where substantially all of the risks and rewards incidental to ownership pass to the lessee. In making this judgement the directors have considered the substance of the arrangement, taking into account various factors including; legal ownership, options to purchase the asset, the term of the lease, the useful economic life of the asset and the present value of the minimum lease payments. Arrangements which are not classified as a finance lease are classified as an operating lease.Key sources of estimation uncertaintyThe key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.(i) Determining and reassessing residual values and useful economic lives of tangible and intangible assetsThe group depreciates tangible assets, and amortises intangible assets, over their estimated useful lives. In determining appropriate useful lives of assets, the directors have considered historic performance as well as future expectations for factors such as the expected usage of the asset, physical wear and tear, technical and commercial obsolescence and legal limitations on the usage of the asset such as lease terms. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.Judgement is applied to determine the residual values for tangible assets; particularly hire fleet, other vehicles and plant and equipment. When determining the residual values, the directors have assessed the amount that the group would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. At each reporting date, the directors also assess whether there have been any indicators, such as a change in how the asset is used, significant unexpected wear and tear and changes in market prices, which suggest previous estimates may differ from current expectations. Where this is the case, the residual value and/or useful life is amended and accounted for on a prospective basis.(ii) Establishing fair value of investment propertiesWhen the fair value of investment properties cannot be measured based on the price of a recent transaction for an identical asset or liability, their fair value is measured using valuation techniques including the discounted cash flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as market rent, vacancy rate, yield requirement and inflation. Changes in assumptions about these factors could affect the reported fair value of investment properties.(iii) Establishing fair value of financial instrumentsWhen the fair value of financial assets and financial liabilities cannot be measured based on quoted prices in active markets or on the price of a recent transaction for an identical asset or liability, their fair values are measured using valuation techniques including the discounted cash flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.(iv) Recoverability of debtorsA provision for debtors is established where it is estimated that the debtors are not considered to be fully recoverable. When assessing recoverability the directors consider factors such as the aging of the receivables, past experience of recoverability, and the credit profile of individual or groups of customers. (v) Employee benefits – long-term incentive schemesThe group operates a long-term incentive scheme in respect of directors and certain senior employees. The group’s obligation under this scheme at the reporting date is calculated using a number of assumptions including expected retention rates, achievement of annually set targets and estimated salary increases. The directors have estimated these assumptions based on historical experience and future expectations of market conditions.


Notes to the Financial Statements for the year ended 31 December 2016

1. RevenueAnalysis by categoryAn analysis of turnover by category is as follows:

2016 2015£’000 £’000

Operating lease rental income 201,687 193,652Sale of vehicles and equipment 4,340 3,793

206,027 197,445

An analysis of other operating income by category is as follows:

2016 2015£’000 £’000

Rental income from investment properties 715 683Royalties 121 57

836 740

Geographical analysisThe group operates in two geographic segments – the UK and the rest of Europe. The respective turnover is set out below:

United Kingdom Rest of Europe Group2016 2015 2016 2015 2016 2015£’000 £’000 £’000 £’000 £’000 £’000

Turnover 189,241 183,277 16,786 14,168 206,027 197,445

2. Operating profit

2016 2015£’000 £’000

This is stated after charging:Repairs and maintenance expenditure 23,626 23,493Depreciation of tangible fixed assets: owned assets 93,521 86,906Operating leases: land and buildings 1,837 2,020Operating leases: hire fleet 396 396Foreign exchange loss – 98Auditor’s remuneration:Fees payable to the company’s auditor for the audit of the company’s annual accounts 102 98Fees payable to the company’s auditor for other services to the company: Other advisory services 3 4

and after crediting:Profit on sale of tangible fixed assets 5,318 6,167Manufacturers’ rebates 136 176Foreign exchange gain 194 –

Notes to the Financial Statements for the year ended 31 December 2016

Dawsongroup28

Notes to the Financial Statements continued Notes to the Financial Statements continued

3. EmployeesThe average monthly number of employees (including executive directors and other key management personnel) was:

2016 2015Number Number

Average number of employees, including executive directors, during the year:Management 45 44Sales and administration staff 454 401Drivers, engineers and others 270 266

769 711

Their aggregate remuneration comprised:

2016 2015£’000 £’000

Wages and salaries 25,595 24,384Social security costs 2,877 2,758Pension contributions 1,340 1,553

29,812 28,695

The pension contributions above represent amounts payable by the group to the fund. £nil have been prepaid (2015: £nil).

4. Directors’ emoluments and interests, including key management personnel

2016 2015 £’000 £’000

Directors’ emolumentsExecutive remuneration and benefits 2,965 2,445Pension contributions 35 168

Total 3,000 2,613

2016 2015 £’000 £’000

Highest paid directorExecutive remuneration and benefits 2,094 822

Total 2,094 822

The number of directors to whom benefits were accrued under money purchase pension schemes was 2 (2015: 2).Long-term incentive schemeThe group operates a long-term incentive scheme in respect of its directors. Amounts recognised at the reporting date are as follows:

2016 2015 £’000 £’000

Provision as at 1 January 1,501 1,984Charged to profit and loss accountUtilised in the year

432(1,337)

452(935)

Provision as at 31 December 596 1,501

Directors’ interestsThroughout the year the group was controlled by trusts, the beneficiaries of which are P M Dawson and his immediate family. P M Dawson received dividends of £9,991,000 during the year (2015: £3,030,000). P M Dawson loaned £3,000,000 back to the company in 2014 which is being repaid over 3 years and a further £3,000,000 in 2016 which is also being repaid over 3 years. Interest is charged, and being accrued, on this loan at 3.0% per annum. The accrued amount at 31 December 2016 was £42,000 (2015: £60,000). Interest of £156,000 has been charged in the year (2015: £90,000). The amount of capital outstanding at the reporting date was £6,000,000 (2015: £3,000,000). Key management personnelThe directors of the group are considered to be the key management personnel. Details of their remuneration can be seen above.

Notes to the Financial Statementscontinued


5. Interest receivable and similar income

2016 2015£’000 £’000

Interest receivable on cash and cash equivalents – 135Interest receivable on HP agreements 162 –Release of fair value provision following settlement of swap contracts 36,506 –Termination fee on cancellation of swaps (16,506) –Income from collateralised debt agreement (note 16) 535 320

20,697 455

6. Interest payable and similar charges

2016 2015£’000 £’000

Interest payable on asset finance arrangements 6,195 6,122Interest payable on loans and borrowings 326 152Interest payable on derivative instruments: swap arrangements 11,517 12,736Other interest payable – –

18,038 19,010

7. Taxation

2016 2015£’000 £’000 £’000 £’000

Analysis of profit or loss charge

Tax charge for the year: Corporation tax 3,227 5,886 Overseas tax 1,598 1,363 Adjustments in respect of prior periods (54) (22)

Total current tax 4,771 7,227

Deferred tax Origination and reversal of timing differences 2,904 1,618 Adjustments in respect of prior periods 53 (2) Effect of decreased tax rate on deferred tax balance (775) (656)

Total deferred tax 2,182 960

Total tax on profit on ordinary activities 6,953 8,187

Tax included in statement of total other comprehensive incomeDeferred tax Revaluation of freehold property – 6

Total tax on other comprehensive income – 6

Dawsongroup30


7. Taxation continued

Reconciliation of tax charge included in profit or lossThe UK standard rate of corporation tax for the year is 20% (2015: 20.25%). The actual charge for the current and the previous year differ from the standard rate for the reasons set out in the following reconciliation:

2016 2015£’000 £’000

Profit on ordinary activities before tax 39,737 42,433

Tax on profit on ordinary activities at standard rate 7,947 8,593

Factors affecting charge for the period: Expenses not deductible for tax purposes 111 115 Difference in tax rates (1,236) (770) Adjustments in respect of higher/lower overseas taxes 339 273 Indexation allowance (158) – Losses brought forward utilised in the year (49) – Adjustments in respect of prior periods (1) (24)

Total tax 6,953 8,187

Factors that may affect future tax chargesA reduction in the UK corporation tax rate from 20% to 19% (effective from 1 April 2017) and to 17% (effective from 1 April 2020) was substantively enacted in September 2016 and has therefore been considered when calculating deferred tax at the reporting date. Deferred tax balances at the reporting date are measured at 17% (2015: 18% on the fair value of properties and 18.5% on all other balances).

Deferred tax expected to reverse in 2017 is £nil.

8. Intangible fixed assets

GroupGoodwill

£’000

Cost:As at 1 January 2016 5,868

As at 31 December 2016 5,868

Amortisation and impairment:As at 1 January 2016 5,868Charge for the year –


Book value:As at 31 December 2016 –

As at 31 December 2015 –

CompanyThe company does not hold any intangible assets.


9. Tangible fixed assets

Freeholdland and buildings

£’000Hire fleet

£’000

Other vehicles,

plant and equipment

£’000

Grouptotal

£’000

Companytotal

£’000

Cost or valuation:As at 1 January 2016 8,546 819,439 11,702 839,687 1,775Exchange adjustment – 7,797 280 8,077 –Reclassifications – (94) 94 – –Additions – 138,131 3,226 141,357 348Disposals – (115,449) (1,927) (117,376) (142)

As at 31 December 2016 8,546 849,824 13,375 871,745 1,981

Depreciation:As at 1 January 2016 179 326,342 6,964 333,485 1,385Exchange adjustment – 3,117 169 3,286 –Reclassifications – (22) 22 – –Charge for the year 57 91,749 1,715 93,521 173Disposals – (72,309) (1,133) (73,442) (66)

As at 31 December 2016 236 348,877 7,737 356,850 1,492

Book value:As at 31 December 2016 8,310 500,947 5,638 514,895 489

As at 31 December 2015 8,367 493,097 4,738 506,202 390

Freehold land and buildingsFreehold land and buildings include £590,000 of capitalised interest which arose on completion of the group’s Milton Keynes head office in 1991. Included in freehold land and buildings above is an amount of £1,475,000 which relates to limestone reserves on which depreciation of £57,000 has been charged during the year. (Cumulative depreciation to date is £236,000). The directors do not consider that this requires accounting for as a separate component. The historical cost of this is £650,000.Included within freehold property is £8,546,000 (2015: £8,546,000) of property held at valuation. The comparable amounts, as determined using historical cost accounting requirements were: cost of £5,631,000 (2015: £5,631,000) and accumulated depreciation of £2,730,000 (2015: £2,560,000).The fair values of the freehold properties have been determined as at the reporting dates by an independent external valuer, who holds a professional qualification with the Royal Institute of Chartered Surveyors and has experience in the locations and classes of the properties valued. The properties are valued using assumptions made by the valuer, namely with regard to market evidence as indicated by sales of comparable properties and the valuers’ knowledge and experience of the property market.CompanyAll of the tangible fixed assets of the company comprise other vehicles, plant and equipment.

10. Investment property

2016 2015Group £’000 £’000

Fair value:As at 1 January 16,752 16,742Additions 1,814 –Net gains on fair value adjustments 2,603 10

As at 31 December 21,169 16,752

The comparable amounts, as determined using historical cost accounting requirements were: cost of £17,959,000 (2015: £16,148,000) and accumulated depreciation of £1,610,000 (2015: £1,545,000). Included in investment property above is £17,812,000 (2015: £13,395,000) relating to investment property in an agricultural estate purchased in 2008. The historic cost of this investment property was £12,077,000.

Dawsongroup32


10. Investment property continued

The fair values of the investment properties have been determined as at the reporting dates by an independent external valuer, who holds a professional qualification with the Royal Institute of Chartered Surveyors and has experience in the locations and classes of the investment properties valued.Investment properties are valued using assumptions made by the valuer, namely with regard to market evidence as indicated by sales of comparable properties and the valuers’ knowledge and experience of the property market.There are no restrictions on the realisability of investment property or the remittance of any income or proceeds on disposal. The company does not have any contractual obligations to purchase, construct or develop investment property for repairs, maintenance or enhancements. CompanyThe company does not hold any investment property.

11. Investment in subsidiary undertakings

2016 2015£’000 £’000

Cost or valuation:As at 1 January 49,111 24,523Impairment loss recognised in profit or loss – –Capital contributions – addition in the year – 24,588

As at 31 December 49,111 49,111

This represents the investment by Dawsongroup plc in the entire issued ordinary share capital of its subsidiary undertakings, all of which are incorporated and operate within the United Kingdom:

Subsidiary undertaking Principal activity

Alexena Limited Property and investment.Dawsonrentals Limited Holding company of United Kingdom trading subsidiary undertakings.Dawsongroup International Limited Holding company of overseas subsidiary undertakings.Praedium Property Limited Property.

The following companies were the trading subsidiary undertakings of Dawsonrentals Limited, Alexena Limited and Dawsongroup International Limited during the year ended 31 December 2016:

SubsidiaryCountry of operation and incorporation Principal activity

Dawsonrentals Truck and Trailer Limited United Kingdom Hire of commercial vehicles and trailers.Dawsonrentals Bus and Coach Limited United Kingdom Hire of buses and coaches.Dawsonrentals Vans Limited United Kingdom Hire of commercial vans.Dawsonrentals Materials Handling Equipment Limited United Kingdom Hire of materials handling equipment

and sweepers. Dawsonrentals Temperature Control Solutions Limited United Kingdom Hire of temperature-controlled products.Dawsonrentals Portable Cold Rooms Limited United Kingdom Hire and sale of commercial refrigeration

equipment.D.G. Finance Limited United Kingdom Vehicle finance.Dawsonrentals Temporary Kitchens Limited United Kingdom Hire of kitchen units and equipment.LHE Finance Limited United Kingdom Finance broking and fleet/contract hire

financing.Ventura Rental Limited United Kingdom Buying and selling of fixed assets.Dawson Road Limited United Kingdom Group property.Dawsongroup International BV The Netherlands Overseas holding company.Thermobil Mobile Kühllager GmbH Germany Hire of temperature-controlled products.Modulfroid Service SARL France Hire of temperature-controlled products.Dawsonrentals (Nederland) BV The Netherlands Hire of temperature-controlled products.Dawsonrentals Polska Sp. z o.o. Poland Hire of temperature-controlled products.Dawsonrentals (Ireland) Limited Ireland Hire of temperature-controlled products.Dawsonrentals Iberica S.L Spain Hire of temperature-controlled products.

All investments represent 100% of the issued ordinary share capital. 100% of the voting rights in each subsidiary undertaking are held ultimately by Dawsongroup plc.


12. Trade and other debtors

2016 2015Group Company Group Company£’000 £’000 £’000 £’000

Due within one yearTrade debtors 21,238 82 18,837 62Amounts receivable under finance lease 1,080 – 425 –Other debtors 1,421 1,078 580 1,124Prepayments 4,190 209 4,113 244Tax recoverable 3,452 3,077 103 3,132Loans receivable from subsidiary undertakings – 54,396 – 41,165Amounts owed by subsidiary undertakings – 9,624 – 9,827

31,381 68,466 24,058 55,554

Due after one yearAmounts receivable under finance leases 1,861 – 173 –

33,242 68,466 24,231 55,554

Loans receivable from subsidiary undertakings are unsecured, repayable on demand and earn interest at 0.25% below base rate. All other amounts owed to subsidiary undertakings are unsecured and repayable on demand.

13. Cash and cash equivalents


Investments – short-term deposits Unrestricted 301 9 450 9 Restricted 41,860 41,860 35,910 35,910

Cash at bank and in hand 2,950 7 1,850 264

Total cash and cash equivalents 45,111 41,876 38,210 36,183Less: restricted (41,860) (41,860) (35,910) (35,910)

Total unrestricted cash and cash equivalents 3,251 16 2,300 273

Amounts available for use by the groupAt the reporting date, £41,860,000 (2015: £35,910,000) of short term deposit investments is not available for use by the group as it is held on deposit as collateral in respect of the collateralised debt agreement (note 16).Short-term deposit investments are subject to variable rates of interest, principally linked to LIBOR. The weighted average interest rate earned during the year was 0.5% (2015: 0.5%).Cash at bank and in hand are subject to variable rates of interest, principally linked to LIBOR. The weighted average interest rate earned during the year was nil% (2015: nil%).

Dawsongroup34


14. BorrowingsGroup

Due within one year

£’000

Due after more than

one year£’000

2016Total

£’000

Due within one year

£’000

Due after more than

one year£’000

2015Total

£’000

Bank overdrafts 13,894 – 13,894 3,931 – 3,931Asset finance arrangements 115,441 130,873 246,314 104,312 142,027 246,339

129,335 130,873 260,208 108,243 142,027 250,270

The group has no committed borrowing facilities.Asset finance arrangementsAsset finance arrangements comprise hire purchase, finance lease and other similar funding effectively secured on specific underlying hire fleet assets. These are all repayable by instalments as follows:

2016 2015Total

£’000Total

£’000

Within one year 115,441 104,312Between one and two years 73,830 71,517Between two and five years 52,833 67,786After more than five years 4,210 2,724

246,314 246,339

Foreign currency asset finance arrangements principally comprise Euro aligned currencies.The interest rate profile of these arrangements is as follows:

2016 2015Total

£’000Total

£’000

Variable rate 245,226 244,597Fixed rate 1,088 1,742

246,314 246,339

Company

Due within one year

£’000

Due after more than

one year£’000

2016Total

£’000

Due within one year

£’000

Due after more than

one year£’000

2015Total

£’000

Bank overdrafts 14,722 – 14,722 5,122 – 5,122Asset finance arrangements – – – – – –

14,722 – 14,722 5,122 – 5,122

Bank overdrafts attract interest at a rate of 1.9% and are repayable on demand.


15. Trade and other creditors


Due within one yearTrade creditors 35,209 81 29,550 47Accruals 15,917 4,297 13,406 3,516Other creditors 1,500 1,500 2,000 2,000Tax payable 4,136 – 3,347 –Deferred income 533 533 535 535Other tax and social security 3,754 110 1,412 130Deposits payable to subsidiary undertakings – 38,333 – 32,888Derivative financial instruments (note 16) 53,201 – 77,660 –

114,250 44,854 127,910 39,116

Due after one yearDeferred income 7,832 7,832 8,365 8,365Other creditors 5,325 5,070 1,138 1,000

13,157 12,902 9,503 9,365

Deposits payable to subsidiary undertakings are unsecured, repayable on demand and incur interest at 1% above base rate.

16. Derivative financial instrumentsThe group’s exposure to variable rate borrowings is hedged by the use of interest rate swaps under which the group pays interest at the following average fixed rates and receives interest at the prevailing relevant 3 and 6 month LIBOR rates.

2016 2015Total

£’000Average

rate %Total

£’000Average

rate %

Period to expiry:Within one year 160,000 4.6 268,500 4.6Between one and two years – – – –Between two and five years – – – –After more than five years – – 30,000 7.0

160,000 4.6 298,500 4.8

The fair value of the interest rate swaps are as follows:

2016£’000

Fair value at 1 January 2016 77,660Loss arising on fair value of interest rate swaps 12,047Release of fair value provision following settlement of swap contracts (36,506)

Fair value at 31 December 2016 53,201

In 2015, the company entered into a collateralised debt agreement with the Royal Bank of Scotland (“RBS”), the interest rate swap counterparty, to partially offset the group’s liability payable upon settlement of certain derivative contracts. As part of this agreement, RBS has deposited £9,220,000 to the company which is subject to certain conditions over the remaining term of the derivative contracts. The deposit has been recognised within deferred income (note 15) and is being recognised as income over the remaining term of the agreement.

Dawsongroup36


17. Provisions for liabilities and charges


Employee benefits 3,393 1,243 3,507 1,945Deferred tax 11,820 – 9,541 –Other provisions 444 – 117 –

15,657 1,243 13,165 1,945

2016 2015Group Company Group Company

Employee benefits £’000 £’000 £’000 £’000

Long-term incentive schemes 3,393 1,243 3,507 1,945

3,393 1,243 3,507 1,945

The provision for long-term incentive schemes at 31 December 2016 included £596,000 (2015: £1,501,000) in respect of the director’s long-term service bonus scheme (note 4) and £2,797,000 (2015: £2,006,000) relating to schemes in place for other employees.


Deferred tax £’000 £’000 £’000 £’000

Accelerated capital allowances 21,304 – 24,727 –Other timing differences (407) – (458) –Investment and freehold property held at fair value (33) – (361) –Derivative instruments held at fair value (9,044) – (14,367) –

Provision for deferred tax 11,820 – 9,541 –

Deferred tax asset (9,484) – (15,186) –Deferred tax liability 21,304 – 24,727 –

Net deferred tax liability 11,820 – 9,541 –

The net deferred tax asset/liability expected to reverse in 2017 is £nil.


Other provisions £’000 £’000 £’000 £’000

Future contractual liabilities 444 – 117 –

444 – 117 –


17. Provisions for liabilities and charges continued

Reconciliation of movements in the yearEmployee

benefits £’000

Deferred tax

£’000

Other provisions

£’000Total

£ ’000

GroupAs at 1 January 2016 3,507 9,541 117 13,165Charged to profit or loss 956 2,182 342 3,480Utilised in the year (1,109) – (16) (1,125) Exchange adjustment 39 97 1 137

As at 31 December 2016 3,393 11,820 444 15,657

Employee benefits

£’000

CompanyAs at 1 January 2016 1,945Charged to profit or loss 18Utilised in the year (720)


18. Called up share capital

2016 2015Number £’000 Number £’000

AuthorisedOrdinary shares of 25p each 51,000,000 12,750 51,000,000 12,750

Allotted, issued and fully paidOrdinary shares of 25p each 32,228,962 8,057 32,228,962 8,057

The ordinary shares carry one voting right per share and no right to fixed income.

19. Dividends

2016p per share

2015p per share

2016£’000

2015£’000

Ordinary shares:First interim paid 31.0 9.4 9,991 3,030

31.0 9.4 9,991 3,030

Dawsongroup38


20. Operating lease commitmentsThe group as lesseeThe group had outstanding commitments for future minimum lease payments under non-cancellable operating leases as at the reporting date as follows:

2016 2015

Hire fleet £’000

Land and buildings

£’000Hire fleet

£’000

Land and buildings

£’000

Not later than one year 33 1,078 27 1,089Later than one year not later than five years 72 2,394 81 2,514Later than five years – 568 – 305

Total future minimum lease payments 105 4,040 108 3,908

The group as lessorThe group leases hire fleet, other vehicles, plant and equipment and land and buildings to third parties. The future minimum lease payments receivable under those non-cancellable leases are as follows:

2016 2015

Hire fleet £’000

Land and buildings

£’000Hire fleet

£’000

Land and buildings

£’000

Not later than one year 73,448 505 68,219 473Later than one year not later than five years 79,025 1,259 75,432 897Later than five years 2,101 4,331 1,472 2,121

Total future minimum lease payments 154,574 6,095 145,123 3,491

The above table excludes expired contracts and those contracts that are transient in nature. These are all for less than one year.The company as lesseeThe company had outstanding commitments for future minimum lease payments under non-cancellable operating leases as at the reporting date as follows:

2016 2015Land and buildings

£’000

Land and buildings

£’000

Not later than one year 327 327Later than one year not later than five years 1,309 1,309Later than five years 2,837 3,163

Total future minimum lease payments 4,473 4,799

21. Capital commitments

2016 2015Future capital expenditure £’000 £’000

Outstanding contracts for capital expenditure 43,131 48,498

Future purchase undertakingsAs part of its trade, the group has undertaken to purchase commercial vehicles and trailers from certain lessors and manufacturers upon the future termination of operating lease agreements or other arrangements with third parties at prices estimated to be not less than realisable value at the time of purchase. At 31 December 2016 the maturity periods and maximum amount of these undertakings were:

2016 2015£’000 £’000

Between two and five years 2,730 2,125


22. Contingent liabilitiesGroupThe group entered into a collateralised debt agreement with the Royal Bank of Scotland (“RBS”) to reduce the group’s liability payable upon settlement of certain derivative contracts (note 16). The deposit of £9,220,000 provided by RBS is subject to certain conditions during the remaining term of the derivative contracts. The group consider that these conditions will be met. Company The company has given guarantees in respect of certain financial obligations of its subsidiary undertakings in the normal course of business. At 31 December 2016 these obligations amounted to £245,485,000 (2015: £249,950,000).The company has entered into a cross guarantee with various other group companies to secure their banking facilities.

23. Related party transactionsAdvantage has been taken of the exemption conferred by Section 33 Related Party Disclosures not to disclose transactions with subsidiary undertakings 100% of whose voting rights are controlled within the group.

Dawsongroup40

Five Year Record

FRS 102 FRS 102 FRS 102 Old UK GAAP

Old UK GAAP

2016£’000

2015£’000

2014£’000

2013£’000

2012£’000

Turnover 206,027 197,445 181,331 159,867 148,556

Operating profit before exceptional items 46,522 49,490 45,701 36,007 27,334Gains/(losses) on revaluation of investment properties 2,603 10 (3) – –Exceptional items – – – – –

Profit on ordinary activities before interest and fair value of derivatives 49,125 49,500 45,698 36,007 27,334Net interest payable 17,341 18,555 18,385 17,162 11,736

Profit before tax and fair value of derivatives 31,784 30,945 27,313 18,845 15,598Release of fair value provision on settlement of swaps 36,506 – – – –Termination fee on cancellation of swaps (16,506) – – – –(Losses)/gains on fair value of derivatives (12,047) 11,488 (27,066) – –

Profit before tax 39,737 42,433 247 18,845 15,598

Intangible fixed assets – – – 14 389Tangible fixed assets 514,895 506,202 450,455 446,805 418,369Investment property 21,169 16,752 16,742 – –Net liabilities (excluding cash and borrowings) (39,929) (34,668) (26,221) (27,393) (17,767)Provisions for liabilities and charges (15,657) (13,165) (12,908) (32,334) (37,593)

Net assets employed 480,478 475,121 428,068 387,092 363,398

Share capital 8,057 8,057 8,057 8,057 8,057Reserves 204,123 177,344 147,317 201,653 187,947

Shareholders’ funds 212,180 185,401 155,374 209,710 196,004Net borrowings 215,097 212,060 183,546 177,382 167,394Derivatives 53,201 77,660 89,148 – –

Capital employed 480,478 475,121 428,068 387,092 363,398

Operating profit before exceptional items as a percentage of: Turnover 22.6% 25.1% 25.2% 22.5% 18.4%

Average capital employed 9.7% 11.0% 11.2% 9.6% 7.8%

Borrowing ratio 101% 114% 118% 85% 85%

Average number of employees 769 711 676 642 601

Turnover per employee (£) 267,916 277,700 268,241 249,014 247,181

Operating profit per employee (£) 60,496 69,606 67,605 56,086 45,481

Five Year Record

Business DirectoryUK business centres(Supported by a branch network of 30 locations)

Dawsonrentals Truck and Trailer Limited Delaware Drive, TongwellMilton Keynes MK15 8JHTel: 01908 218111Fax: 01908 218444Email: [email protected]

Used Vehicle Disposals DivisionDawsondirectDelaware Drive, TongwellMilton Keynes MK15 8JHTel: 01908 218111Fax: 01908 218444Email: [email protected]

Dawsonrentals Bus and Coach LimitedDelaware Drive, TongwellMilton Keynes MK15 8JHTel: 01908 218111Fax: 01908 218444Email: [email protected]

Used Bus and Coach Disposals DivisionVenturaWharley Road, Cranfield Milton Keynes MK43 0AWTel: 01908 218111Fax: 01908 218444Email: [email protected]

Dawsonrentals Materials Handling Equipment Limited Aberford Road, GarforthLeeds LS25 2ETTel: 01132 874874Fax: 01132 869158Email: [email protected]

Dawsonrentals SweepersMunicipal HouseArmytage RoadBrighouse HD6 1PTTel: 01484 400111Fax: 01484 400063Email: [email protected]

Dawsonrentals Temperature Control Solutions LimitedFulwood Industrial EstateSutton-in-AshfieldNottinghamshire NG17 6AFTel: 01623 516666Fax: 01623 516819Email: [email protected]

Dawsonrentals Vans LimitedDawson RoadMount Farm, Milton KeynesBuckinghamshire MK1 1JNTel: 01908 335177 Fax: 01908 335174Email: [email protected]

Used Van Disposals DivisionDawsonrentals Van SalesKelberg HouseMiddleton Stoney RoadWeston on the Green, BicesterOxfordshire OX25 3THTel: 0844 8003004Fax: 01869 343557Email: [email protected]

Dawsonrentals Portable Cold Rooms LimitedUnits 15 & 16Pucklechurch Trading EstatePucklechurch, Bristol BS16 9QHTel: 01179 373310Fax: 01179 373316Email: [email protected]

Dawsonrentals Temporary Kitchens LimitedUnits 15 & 16Pucklechurch Trading EstatePucklechurch, Bristol BS16 9QHTel: 01179 373310Fax: 01179 373316Email: [email protected]

LHE Finance Limited21 Headlands Business ParkRingwood BH24 3PBTel: 01425 474070Fax: 01425 474090Email: [email protected]

Overseas business centresFranceModulfroid Service SARL1 rue Lenôtre BP 636 95196 Goussainville CedexParisFranceTel: 00 33 1 39 88 63 00Fax: 00 33 1 39 88 62 63Email: [email protected]

GermanyThermobil Mobile Kühllager GmbHOtto-Schott Str. 30D-41542 DormagenGermanyTel: 00 49 2133 50640Fax: 00 49 2133 50641 20Email: [email protected]

The NetherlandsDawsonrentals (Nederland) BVGeyssendorfferweg 663088 GK RotterdamThe NetherlandsTel: 00 31 10 495 2955Fax: 00 31 10 495 3226Email: [email protected]

IrelandDawsonrentals (Ireland) LimitedUnit 20, Toughers Business ParkNewhall, Naas, County KildareIrelandTel: 00 353 45 44 88 10Fax: 00 353 45 44 88 11Email: [email protected]

PolandDawsonrentals Polska Sp. z o.o.ul. Marywilska 34 A03-228, WarszawaPolandTel: 00 48 22 877 4115Fax: 00 48 22 877 4113Email: [email protected]

SpainDawsonrentals Ibérica S.L.Passeig del Rengle 5,3ra Mar08302 MataróBarcelonaSpainTel: 0034 93 015 35 14Fax: 0034 93 007 86 00Email: [email protected]

Dawsongroup plc

Delaware Drive

Tongwell

Milton Keynes

MK15 8JH

Telephone

01908 218111

Email

[email protected]

Website

www.dawsongroup.co.uk

Registered number: 1902154

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